The Russian law on priority development areas has come into force
On March 30, 2015 the Federal Law on Priority Development Areas in the Russian Federation has come into force.
The Federal Law defines priority development areas as part of the territory of the Russian Federation constituent entity where a special legal status is established for entrepreneurial and other activities with the aim of creating a favourable environment for attracting investments, ensuring accelerated economic growth and creating comfortable living conditions.
In accordance with the Federal Law, a PDA is established for 70 years following a Government decision, and its term can be extended.
Under the Federal Law, PDAs can be created in the territory of the Far Eastern Federal District, as well as in single-industry towns with the most complicated socioeconomic situation, within three years of the law’s enactment. After three years, PDAs can be created in other Russian Federation constituent entities.
The first three PDAs were approved in February this year which include “Khabarovsk”, “Komsomolsk” and “Nadezhdinskaya” (in Primorye and Khabarovsk territories).
As Russian President Vladimir Putin pointed out, “the law offers various incentives, including reduced and even zero rates on some taxes, fast-track simplified administrative procedures, provision of ready-to-use engineering infrastructure, and so forth”.